In a recent Market Watch article, Jane Bryant Quinn asks…”what about the financial planners who advise pre- and newly post-retirement clients to hold a substantial portfolio stocks? Are there flaws in that asset allocation?“
“The resounding answer: NO. They’ve kept the faith in a financial portfolio that’s 50 percent to 60 percent invested in stocks for people facing a retirement of 20 to 40 years.” Will investors still believe them when the next wave is over? The current problem is that those heavily invested portfolios are now devastated, leaving many investors, especially retirees, asking themselves why they listened to their advisor’s stock market investing advice in the first place.
Are these trusted financial advisors working with the best interest of their client in mind as they give you investing advice, or are they driven to “annuitize assets” to earn wrap fees or commission trails?
The stock market involves a whole mix of human emotions: hope, ignorance, greed, fear, desire, dreams and aspirations. Markets reflect how we feel about the future. Why are periods of overvaluation followed by poor or negative returns? Because trees don’t grow to the sky. Everything has its limits, and your advisor should know this.
When enough people realize this, they begin to take their money off the table. Then the market comes back to trend. Finally, when all hope seems lost, the market becomes a bargain again. Savvy investors will keep their powder dry until then. Patience will pay high dividends to the educated investor. DON’T MISS YOUR OPPORTUNITY to profit from this landslide!